Half-yearly Report

Anpario plc, the international producer and distributor of natural feed
additives for animal health, hygiene and nutrition is pleased to
announce its interim results for the six months to 30 June 2013.

Financial Highlights

32% increase in underlying earnings per share1 to 6.94p
(2012: 5.25p)

28% rise in adjusted EBITDA2 to £1.7m (2012: £1.3m)

27% improvement in gross profit to £4.5m (2012: £3.6m)

20% uplift in sales revenue to £13.0m (2012: £10.8m)

Cash balances of £5.6m at 30 June 2013 (Dec 2012: £3.7m)

Operational Highlights

Profit growth delivered by all key divisions

Established wholly owned subsidiary in Brazil and regional office in
Malaysia

Further good progress in China

Successful launch of new toxin binder range

Continuing strategy of building local sales and support operations

Richard Rose, Chairman, commented:

“The Group’s performance in the first half of the year has been strong
with the key strategic initiatives beginning to deliver the expected
benefits; some earlier than anticipated. Getting closer to our customers
in target regions continues to be the priority for the Group. The second
half has started well continuing the performance of the first half and
we expect this growth to be maintained.

The healthy cash balance and continuing cash generative nature of the
business leaves Anpario well positioned to finance further organic
growth and also to make selective investments and earnings enhancing
acquisitions, should suitable opportunities arise, which will drive
progress and continue to enhance the value of Anpario for its
shareholders.”

Chairman’s Statement

Anpario has delivered a strong performance in the six months to 30 June
2013. The result reflects the success of a number of recent key
strategic initiatives including the formation of a wholly owned Chinese
subsidiary, the re-structuring of our UK Agriculture Division and the
acquisition of Meriden Animal Health in 2012. These initiatives are
consistent with our strategy to supply high performance natural feed
additives in order to deliver improving overall levels of return, whilst
also demonstrating the resilience of our geographic and product
diversity.

The Group’s strategy to establish sales and technical resource closer to
the customer is already generating success in a number of territories
including Brazil, the third largest animal production country in the
world. The strengthening of our trading brands through focused marketing
along with increasing market penetration of our current products and the
staged launch of new products will only serve to create further
opportunities.

Financial Review

In the six months to 30 June 2013 sales advanced to £13.0m (2012:
£10.8m). This is primarily due to a 13% increase in like for like
specialist feed additive sales and the Meriden acquisition. As a result
of the improvement in sales mix, 89% of total sales are now generated
from speciality feed additive products contributing 98% of gross profit.

Gross profit has continued to increase, rising from £3.6m to £4.5m,
reflecting the effect of organic growth and the Meriden acquisition.
Gross margin percentage also continued to rise, improving from 33.0% to
35.1% as a result of the product sales mix and further production
efficiencies.

Adjusted EBITDA2 increased by 28% to £1.7m (2012: £1.3m). The
only significant adjustments to reported operating profit relate to the
Meriden acquisition costs in 2012 and the associated accounts charge for
amortisation of goodwill. The increase in administrative expenses
reflects the Meriden operations and the Group’s investment in key
technical and sales resources.

Underlying earnings per share1 increased by 32% to 6.94 pence
per share from 5.25 pence per share.

The balance sheet remains strong and debt free with good cash
generation. The Group ended the period with a cash balance of £5.6m (Dec
2012: £3.7m).

Operations – International Agriculture

The Division made good progress with its three trading brands,
Kiotechagil, Meriden and Optivite, delivering growth. Within our
geographic portfolio, the Asia Pacific operations continued to perform
strongly with sales and gross profit growth of 20% and it is now the
largest contributor in terms of sales revenue and profitability.

In the second quarter, the Group received approval from the Malaysian
authorities to establish a regional office in Kuala Lumpur. This new
business unit will support the process of establishing local sales and
technical support for our customers in the Asia Pacific region.
Resources are currently being strengthened in the region and will allow
the Group to be closer to its markets and work more effectively with its
customers. Increased emphasis in the region is already demonstrating its
value with encouraging sales growth of Anpario products in China,
Indonesia, South Korea, Malaysia, Thailand, and Vietnam.

Anpario’s wholly owned subsidiary in China has continued its impressive
progress, achieving sales growth of 72% compared to the same period last
year. The performance is significant considering recent events in China
including the outbreak of avian influenza and pork prices reaching their
lowest levels in recent years.

In Brazil, the Group is confident of achieving further progress having
recently received approval to establish a wholly owned subsidiary in Sao
Paulo. Product trials in Brazil have demonstrated the efficacy of a
number of our products including Bactacid, pHorce, Prefect and Salkil,
giving customers a high return on investment for all life stages of pigs
and poultry. These results have proved beneficial in supporting our
leading acidifier brands not only within the local market but also to
the region and contributing to raising the awareness and capability of
Anpario’s trading brands.

The economic challenges in Europe remain. Financial prudence has been
exercised by continuing to restrict credit lines and payment terms to
customers where the economic situation warrants particular caution.
Accordingly, resource is being concentrated on those countries with the
greatest profit potential, and this has resulted in an overall double
digit growth in profitability for the region. The Group will continue to
utilise a similar strategy across all trading brands and regions. This
financial strategy has been implemented in the Middle East which remains
difficult although conditions are improving in some countries, which are
re-opening their markets for trade. Anpario has achieved a 41% increase
in sales in the area compared to the same period last year.

The integration of Meriden is continuing with the Division contributing
notably to our half year figures. A particularly pleasing element of
this has been the growth in sales from customers in Africa, albeit from
a low base. Significant sales progress in Algeria, Kenya and Nigeria has
opened up further geographic opportunities for the Group as we have
previously not had a presence in these territories.

Operations - UK Agriculture

This division has made excellent progress with double-digit growth in
gross profit highlighting the advance made by a strategic re-positioning
of the business to focus on value-added products. The division has
utilised the launch of a new toxin binder, Ultrabond, as a vehicle to
penetrate a variety of sectors including the ruminant and home-mix
markets with great effect. This strategy will continue to remain a focus
for the division as it strives to increase market share for the
remaining products in its portfolio.

Economic pressures within the UK organic animal feed market continue to
challenge the commitment of suppliers and farmers. Following an
exceptional performance in 2012, the progress of Vitrition, our Organic
Division, has slowed as it continues to manage the uncertainty within
the customer base. However, the Division remains committed to supplying
the organic meat production industry and through strong operational
management remains in a prime position to consolidate its share further
as the challenges in the market continue.

Central Operations

The re-structuring of the technical team is now complete and its profile
has been raised with the majority of new staff holding appropriate
veterinary or science qualifications. This team will enhance the level
of scientific support for our sales teams and end users, and accelerate
our product development programme. The benefits in our product
development programme are already being demonstrated with, for example,
our new toxin binder range delivering year on year growth of 38% in
sales revenue.

The Group has completed the appointment of brand managers for each of
its trading brands. The quality and effectiveness of the product range
has enabled the Group to attain its current position. Now, with the
introduction of a broader marketing focus, our trading brands will be
able to leverage these benefits to greater effect, ensuring an increased
awareness of the Group around the world whilst transforming our products
into stronger brands.

Outlook

The second half of the year has started well, continuing the performance
of the first half and we expect this growth to be maintained. The
Group’s focus continues to be on building a stronger local sales and
technical presence in the key meat producing regions around the world.

The healthy cash balance and continuing cash generative nature of the
business leaves Anpario well positioned to finance further organic
growth and also to make selective investments and earnings enhancing
acquisitions, should suitable opportunities arise, which will drive
progress and continue to enhance the value of Anpario for its
shareholders.

Richard S Rose

Chairman

19 September 2013

1 Underlying earnings per share represents profit for the
period before: exceptional items; unwinding of discount on contingent
consideration and prior year tax adjustments divided by the weighted
average number of shares in issue.

The consolidated income statement has been prepared on the basis
that all operations are continuing operations.

Basic earnings per share

4

6.67p

3.31p

11.62p

Diluted earnings per share

4

6.26p

3.28p

11.11p

Underlying earnings per share

4

6.94p

5.25p

13.32p

Diluted underlying earnings per share

4

6.50p

5.21p

12.73p

Unaudited consolidated statement of comprehensive income

for the six months ended 30 June 2013

six months to

six months to

year ended

30/06/2013

30/06/2012

31/12/2012

£000

£000

£000

Profit for the period

1,217

647

2,104

Exchange difference on translating foreign operations

(8)

28

24

Total comprehensive income for the period

1,209

675

2,128

Attributable to the owners of the parent:

1,209

676

2,128

Non-controlling interests

-

(1)

-

Total comprehensive income for the period

1,209

675

2,128

Unaudited consolidated balance sheet

as at 30 June 2013

as at

as at

as at

30/06/2013

30/06/2012

31/12/2012

Notes

£000

£000

£000

Intangible assets

6

9,132

9,778

9,076

Property, plant and equipment

7

2,926

2,797

2,784

Deferred tax assets

228

318

228

Non-current assets

12,286

12,893

12,088

Inventories

1,773

1,304

1,632

Trade and other receivables

6,064

6,980

6,993

Cash and cash equivalents

5,645

2,831

3,694

Current assets

13,482

11,115

12,319

Total assets

25,768

24,008

24,407

Called up share capital

4,565

4,555

4,555

Share premium

3,904

3,828

3,884

Other reserves

(472)

(638)

(496)

Retained earnings

11,159

8,911

9,942

Equity attributable to owners of the parent company

19,156

16,656

17,885

Non-controlling interest

-

49

-

Total equity

19,156

16,705

17,885

Trade and other payables

-

373

425

Deferred tax liabilities

1,034

1,290

1,044

Non-current liabilities

1,034

1,663

1,469

Trade and other payables

5,082

5,243

4,912

Current income tax liabilities

496

397

141

Current liabilities

5,578

5,640

5,053

Total liabilities

6,612

7,303

6,522

Total equity and liabilities

25,768

24,008

24,407

Unaudited consolidated statement of changes in equity

for the six months ended 30 June 2013

Called up share capital

Share premium

Other reserves

Retained earnings

Non-controlling interest

Total equity

£000

£000

£000

£000

£000

£000

Balance at 1st January 2012

4,555

3,828

(695)

8,264

50

16,002

Profit for the period

-

-

-

647

-

647

Currency translation differences

-

-

29

-

(1)

28

Total comprehensive income for the period

-

-

29

647

(1)

675

Share-based payment adjustments

-

-

28

-

-

28

Transactions with owners

-

-

28

-

-

28

Balance at 30 June 2012

4,555

3,828

(638)

8,911

49

16,705

Profit for the period

-

-

-

1,457

-

1,457

Currency translation differences

-

-

(5)

-

1

(4)

Total comprehensive income for the period

-

-

(5)

1,457

1

1,453

Sale of treasury shares

-

56

97

-

-

153

Share-based payment adjustments

-

-

50

-

-

50

Dividends relating to 2011

-

-

-

(436)

-

(436)

Acquisition of interest in subsidiary from non-controlling interest

-

-

-

10

(50)

(40)

Transactions with owners

-

56

147

(426)

(50)

(273)

Balance at 31 December 2012

4,555

3,884

(496)

9,942

-

17,885

Profit for the period

-

-

-

1,217

-

1,217

Currency translation differences

-

-

(8)

-

-

(8)

Total comprehensive income for the period

-

-

(8)

1,217

-

1,209

Issue of share capital

10

20

-

-

-

30

Share-based payment adjustments

-

-

32

-

-

32

Transactions with owners

10

20

32

-

-

62

Balance at 30 June 2013

4,565

3,904

(472)

11,159

-

19,156

Unaudited consolidated statements of cash flows

for the six months ended 30 June 2013

six months to

six months to

year ended

30/06/2013

30/06/2012

31/12/2012

£000

£000

£000

Cash generated from operating activities

2,200

73

1,740

Income tax refunded

57

606

430

Net cash generated from operating activities

2,257

679

2,170

Acquisition of subsidiary, net of cash acquired

-

(2,126)

(2,276)

Purchases of property, plant and equipment

(238)

(37)

(117)

Proceeds from disposal of property, plant and equipment

-

12

18

Payments to acquire intangible fixed assets

(113)

(65)

(166)

Interest received

22

15

39

Net cash used by investing activities

(329)

(2,201)

(2,502)

Sale of treasury shares

-

-

153

Proceeds from issuance of shares

30

-

-

Dividend paid to company's shareholders

-

-

(436)

Acquisition of interest in subsidiary from non-controlling interest

-

-

(40)

Net cash used in financing activities

30

-

(323)

Net increase/(decrease) in cash & cash equivalents

1,958

(1,522)

(655)

Effect of exchange rate changes

(7)

(4)

(8)

Cash and cash equivalents at the beginning of the period

3,694

4,357

4,357

Cash and cash equivalents at the end of the period

5,645

2,831

3,694

six months to

six months to

year ended

30/06/2013

30/06/2012

31/12/2012

Cash generated from operating activities

£000

£000

£000

Profit before income tax

1,506

896

1,522

Net finance cost/(income)

26

(15)

71

Depreciation, amortisation and impairment

152

118

1,005

Loss on disposal of property, plant and equipment

-

1

2

Share-based payments

32

28

78

Changes in working capital:

Inventories

(131)

(1)

(330)

Trade and other receivables

926

(2,080)

(1,192)

Trade and other payables

(311)

1,126

584

Net cash generated from operating activities

2,200

73

1,740

Notes to the financial statements

1. General information

Anpario plc ("the company") and its subsidiaries (together "the
group") manufacture and supply high performance natural feed
additives for the agricultural market with products to improve the
health and output of animals.

The company is traded on the London Stock Exchange Aim market and is
incorporated and domiciled in the UK. The address of the registered
office is Manton Wood Enterprise Park, Worksop, Nottinghamshire, S80
2RS.

2. Basis of preparation

The consolidated financial statements comprise the accounts of the
company and its subsidiaries drawn up to 30 June 2013.

The consolidated financial statements have been prepared on the
basis of the accounting policies set out in the group's financial
statements for the year ended 31 December 2012, which are available
on the company's web site at www.anpario.com.

Of the new standards, amendments and interpretations that are in
issue and mandatory for the financial year ending to 31 December
2013, there is no financial impact on these consolidated interim
financial statements.

This condensed consolidated interim financial information does not
comprise statutory accounts within the meaning of section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31
December 2012 were approved by the Board of Directors on 17 April
2013 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under
section 498 (2) or (3) of the Companies Act 2006.

The consolidated interim financial information for the period ended
30 June 2013 is neither audited nor reviewed.

3. Segment information

UK and Eire

International

Total

£000

£000

£000

for the six months ended 30 June 2013

Total segmental revenue

2,950

10,271

13,221

Inter-segment revenue

-

(269)

(269)

Revenue from external customers

2,950

10,002

12,952

Adjusted EBITDA

200

1,524

1,724

Depreciation, amortisation and impairment charges

(19)

(133)

(152)

Income tax

(21)

(268)

(289)

Total assets

8,882

16,886

25,768

Total liabilities

(2,373)

(4,239)

(6,612)

for the six months ended 30 June 2012

Total segmental revenue

3,291

7,784

11,075

Inter-segment revenue

-

(257)

(257)

Revenue from external customers

3,291

7,527

10,818

Adjusted EBITDA

224

1,124

1,348

Depreciation, amortisation and impairment charges

(38)

(80)

(118)

Income tax expense

(41)

(208)

(249)

Total assets

7,134

16,874

24,008

Total liabilities

(2,170)

(5,133)

(7,303)

for the year ended 31 December 2012

Total segmental revenue

6,874

17,114

23,988

Inter-segment revenue

-

(479)

(479)

Revenue from external customers

6,874

16,635

23,509

Adjusted EBITDA

305

2,804

3,109

Depreciation, amortisation and impairment charges

(26)

(979)

(1,005)

Income tax expense

97

485

582

Total assets

7,352

17,055

24,407

Total liabilities

(1,529)

(4,993)

(6,522)

A reconciliation of adjusted EBITDA to profit before tax is provided
as follows: